BermudAir issues $1 million bond on Obligate with crypto firm XBTO

Obligate
4 min readMay 2, 2024
Innovative funding approach aligned with BermudAir’s focus on growth | Image from XBTO

BermudAir, Bermuda’s premier boutique airline, today announced it has completed a $1 million USD tokenised bond issuance, executed via Obligate, the leading on-chain capital markets platform, in partnership with global digital assets and cryptofinance firm XBTO Group (“XBTO”).

This innovative tokenised transaction is issued on the public blockchain Polygon, with all payments in the stablecoin USDC, offering a 15-month, 15% p.a. return for investors. BermudAir is the first airline to leverage cryptofinance capabilities with XBTO and Obligate to raise capital in the new tokenised credit markets, with XBTO acting as lead arranger and bookrunner.

This debt financing was identified as an opportunity to diversify BermudAir’s capital management strategy. It will fund operational and resource enhancements for the airline, particularly related to route expansion, to cater to growing demand and consolidate its position in new markets.

Even as a young airline, the funding needs of our business are rapidly evolving,” said Adam Scott, Founder and CEO of BermudAir. “Having this kind of innovative financing in the range of available options works for us. The efficiencies of using fintech to raise capital in this way are self-evident, and we’re pleased to be the first airline to do so with another Bermuda-based company that’s already so well-established in the market.

This milestone represents a significant first step towards enabling democratized access to funding and investment opportunities for both companies and investors alike,” said Philippe Bekhazi, CEO of XBTO.

Our collaboration with BermudAir and XBTO highlights Obligate’s strategic focus in enabling blockchain-based debt issuances,” said Tobias Wohlfarth, Head of Origination at Obligate. “This issuance demonstrates our platform’s capability to efficiently and securely connect issuers with investors in a regulated environment, reflecting our commitment to innovating the private debt market and expediting investment opportunities.

The bond is issued in USDC, a stablecoin pegged to the U.S. dollar and backed by U.S. dollar reserves such as cash and U.S. treasuries. USDC reserves are held in the custody and management of leading U.S. financial institutions, including BlackRock and BNY Mellon.

Launched last year, BermudAir has quickly expanded operations beyond three U.S. routes to include seven routes across the U.S. and Canada, including its latest additions Toronto, and Halifax. The airline operates over 50 flights per week on Embraer E175 aircraft featuring a dual-class cabin, with 14 seats in its business cabin and 52 seats in the economy cabin, and a focus on convenience, comfort, and exceptional service for all guests.

Since launch, BermudAir has increased flight capacity between Bermuda and North America, underscoring its commitment to supporting growth and year-round travel to Bermuda for both leisure and business travellers.

About BermudAir
BermudAir is Bermuda’s boutique airline, committed to redefining the travel experience. With a fleet of Embraer E175 aircraft renowned for exceptional performance and passenger comfort, BermudAir exemplifies its commitment to excellence. Operating convenient flights to and from Baltimore/Washington International Thurgood Marshall Airport, Boston Logan International Airport, Fort Lauderdale-Hollywood International Airport, Halifax Stanfield International Airport, Orlando International Airport, Toronto Pearson International Airport, and Westchester County Airport, BermudAir enhances connectivity to the U.S. East Coast, South Florida and Canada, contributing to the growth and prosperity of Bermuda. With a dedication to exceptional service, and curated onboard offerings that showcase the island’s renowned hospitality and varied locally available food and beverages, BermudAir provides an unparalleled travel experience. For more information, and to book flights, download the BermudAir app or visit www.flybermudair.com.

About XBTO
Founded in 2015, XBTO stands as a prominent platform in the world of digital assets, specialising in tailored investment solutions for sophisticated non-US investors and institutions. With its team boasting over 9 years of expertise in digital assets and an impressive twenty-year track record in traditional finance, XBTO occupies a unique position at the crossroads of these two financial realms. This experience equips XBTO to provide expert insights and innovative solutions, enabling clients to navigate the ever-evolving landscape of digital assets with confidence and precision.

About Obligate
Obligate AG is a member of VQF, a Swiss FINMA regulated AML SRO, and a financial intermediary. Standing at the forefront of institutional adoption in on-chain capital markets, Obligate is providing a secure, transparent, and regulatory compliant platform for the issuance, trading, and lifecycle management of debt instruments natively issued on the blockchain. The platform’s unique architecture caters to the complex needs of institutional investors whilst lowering the barriers of entry for issuers by providing efficient access to multilateral financing. Featuring their proprietary eNotesTM, ledger-based securities based on the most advanced DLT-legislation, a comprehensive dispute resolution framework, and global enforceability of the debt securities, Obligate demonstrates its commitment to meeting institutional standards.

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Obligate

Obligate is an investment platform that enables investors to explore and invest in on-chain bonds in a regulated environment.